NEW YORK - SIGA Technologies, Inc. (NASDAQ: SIGA), a pharmaceutical company specializing in infectious diseases, has secured a new contract with the U.S. Department of Defense (DOD) for the procurement of approximately $9 million of TPOXX®. The contract includes a supply of both oral and intravenous (IV) formulations of the antiviral medication.
This recent deal marks the third DOD contract for the procurement of TPOXX® over the past three years, reflecting the ongoing collaboration between SIGA and the DOD's Joint Program Executive Office for Chemical, Biological, Radiological and Nuclear Defense (JPEO-CBRND). The partnership aims to develop a Post-exposure Prophylaxis (PEP) indication for oral TPOXX®, supported by a development contract valued at around $27 million, along with a Cooperative Research and Development Agreement.
Diem Nguyen, CEO of SIGA, emphasized the importance of this contract in supporting military personnel against orthopoxvirus threats, such as smallpox, and the company's commitment to developing treatments for global health threats.
With this new contract, SIGA's outstanding orders for oral and IV TPOXX® total approximately $154 million, with over 85% of this amount generated within the last three months. TPOXX® is approved in the U.S. and Canada for the treatment of smallpox and authorized in Europe and the UK for treating smallpox, mpox (monkeypox), cowpox, and vaccinia complications.
The company's forward-looking statements highlighted the potential risks and uncertainties in their business, such as the possibility of delays in performance, changes in market conditions, and regulatory challenges. However, they remain focused on fulfilling outstanding orders and advancing their research and development initiatives.
The information for this article is based on a recent press release statement from SIGA Technologies, Inc.
In other recent news, SIGA Technologies has reported a significant increase in product revenues for the second quarter of 2024, hitting $21 million. This growth was primarily driven by diverse TPOXX deliveries to various customers, including the US Strategic National Stockpile, the Department of Defense, and 11 international clients. The company is also in the process of securing a new contract with the US government, expected to exceed the current $546 million value.
In addition to its financial progress, SIGA Technologies is making strides in clinical trials. Preliminary data from a trial named PALM 007, sponsored by the National Institute of Allergy and Infectious Diseases, indicated potential benefits of tecovirimat, an antiviral drug, for certain patient groups, despite not meeting its primary endpoint. Further investigation is being supported by both the trial's sponsor and SIGA Technologies, particularly for early treatment and severe cases of mpox.
Lastly, SIGA Technologies is expanding TPOXX indications and progressing with clinical trials for a new mpox strain, aiming to file a supplemental NDA by 2025. These developments highlight SIGA Technologies' ongoing commitment to growth and innovation in the biopharmaceutical industry.
InvestingPro Insights
SIGA Technologies, Inc. (NASDAQ: SIGA) has recently fortified its financial standing with a new Department of Defense contract, underscoring its vital role in the biodefense sector. Investors monitoring SIGA's performance will find several key metrics from InvestingPro that paint a robust financial picture as of Q2 2024. The company boasts a market capitalization of $680.36 million and a particularly compelling price-to-earnings (P/E) ratio of 7.66, which further adjusts to 7.52 when considering the last twelve months. This valuation signals an attractive entry point for investors relative to earnings.
Moreover, SIGA's revenue growth stands out with an impressive increase of 76.9% over the last twelve months. This is further amplified by the quarterly revenue growth of 271.05% in Q2 2024, reflecting the company's successful contract acquisitions and potential for sustained growth. The gross profit margin of 74.88% during the same period highlights the company's efficiency and profitability, a testament to its strong financial management.
The InvestingPro Tips highlight SIGA's financial resilience, noting that the company holds more cash than debt on its balance sheet and has a high shareholder yield. With liquid assets surpassing short-term obligations, the company is well-positioned to meet its financial commitments. Investors looking for more insights can find additional InvestingPro Tips, such as SIGA's strong return over the last three months and predictions of profitability for the year, by visiting https://www.investing.com/pro/SIGA. These tips, along with the company's recent contract success, provide a comprehensive view of SIGA's financial health and future prospects.
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